Home ยป Surge in Demand for AI Chips Boosts AMD Data Center and Client Group by Over 80% in Q1/2024

Surge in Demand for AI Chips Boosts AMD Data Center and Client Group by Over 80% in Q1/2024

AMD reported its first quarter financial results for 2024 with total revenue of $5.473 billion, an increase of 2% compared to the same quarter in the previous year, and net income of $123 million according to GAAP accounting standards.

Dr. Lisa Su, CEO of AMD, stated that revenue from the Data Center and Client groups saw significant growth of over 80% driven by the demand for the MI300 family of AI chips alongside increased sales of Ryzen and EPYC processors. This period marks an exciting time for the industry as AI continues to drive increased demand for processing units across all customer segments, with AMD offering products to support every group.

Su further elaborated during the earnings call that major customers such as Microsoft, Meta, and Oracle have placed orders for the MI300X chips introduced late last year, with sales exceeding $1 billion. Additionally, AMD has plans to release new AI chips this year to further meet customer demands.

Source: AMD and CNBC

TLDR: AMD’s first quarter 2024 earnings showcased growth in revenue and net income, driven by increased demand for AI chips and processor sales across various customer segments. Major clients like Microsoft, Meta, and Oracle have shown strong interest in AMD’s products.

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